SUBJECT:
title
Approval of a resolution authorizing the Interim President & CEO, or their designee, to finalize and execute a contract modification of the marketing services contracts approved by Resolution AI-2020-1371, increasing the contingency funding by $800,000, for a total not-to-exceed amount of $11,107,259.
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FISCAL IMPACT:
Funding for this action is available in the FY2023 Operating Budget
STRATEGIC PLAN:
Strategic Goal Alignment:
☒ 1. Customer ☒ 2. Community
☐ 3. Workforce ☐ 4. Organizational Effectiveness
Strategic Objectives:
☐ 1.1 Safe & Reliable Service ☒1.2 High Quality Customer Experience ☐ 1.3 Accessible System
☐ 2.1 Support Sustainable Regional Growth ☐ 2.2 Become a Carbon Neutral Agency
☐ 2.3 Responsive to Community and Customer Needs ☒ 2.4 Regional Leader in Transit Planning
☐ 3.1 Diversity of Staff ☐ 3.2 Employer of Choice ☐ 3.3 Expand Highly Skilled Workforce
☐ 4.1 Fiscally Responsible and Transparent ☐ 4.2 Culture of Safety ☐ 4.3 State of Good Repair
EXPLANATION OF STRATEGIC ALIGNMENT: The marketing contracts support CapMetro’s Marketing & Communications Department in significant efforts to educate and inform the community, as well as market CapMetro’s services to attract and retain riders.
BUSINESS CASE: The action requested is within the CapMetro budget that was approved by the CapMetro Board of Directors and is not a request for additional funding. This action is to approve the agency’s authority to allocate more funding to a board-approved contract.
COMMITTEE RECOMMENDATION: This item will be presented to the full board on November 21, 2022.
EXECUTIVE SUMMARY: A revision to a Board approved resolution to increase the contingency amount on option years 2 and 3 of the Marketing Services contracts by $800,000 to provide support services budgeted and necessary for strategic projects in FY 23 and FY 24. The FY 23 budget has multiple significant projects that will require a level of service from these contracts not anticipated in the original pricing. Inflation has also increased the costs of reimbursables permissible at market rates under this contract. The addition of these contingency funds adds a hedge to the overall contract amount that is expected to cover costs for the remainder of the contract.
DBE/SBE PARTICIPATION: The DBE goal will remain as 12% and will apply to this modification.
PROCUREMENT: On November 23, 2020, the CapMetro Board of Directors authorized CapMetro to enter into a contract with the Sensis Agency and the Sherry Matthews Group for one base year and three option periods of 12 months each for the not-to-exceed amount of $10,307,259, which included a 10% contingency. A contract was subsequently awarded to both firms on December 4, 2020. CapMetro intends to exercise Option Period 2 (year 3, final year of the contract) to extend the term through December 23, 2023. CapMetro is now seeking board approval to increase the contingency funding for both contracts by $800,000 total, increasing the not-to-exceed amount to $11,107,259.
RESPONSIBLE DEPARTMENT: Marketing
body
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2022-632
WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors and Capital Metro management endeavor to educate and inform its customers and the larger public of its service offerings, changes and improvements; and
WHEREAS; the Capital Metropolitan Transportation Authority Board of Directors and Capital Metro management recognize the need to maintain marketing services contracts with the flexibility to provide a full range of services to accomplish its goals and objectives.
NOW, THEREFORE, BE IT RESOLVED by the Capital Metropolitan Transportation Authority Board of Directors that the Interim President & CEO, or their designee, is authorized to finalize and execute a contract modification of the marketing services contract approved by Resolution AI-2020-1371 by $800,000, in an amount not-to-exceed $11,107,259.
____________________ Date: ____________________
Secretary of the Board
Leslie Pool